Instructions for IRS Form 990-t - Exempt Organization Business Income Tax Return (And Proxy Tax Under Section 6033(E)) 2017

January 1, 2017 "Instructions For Irs Form 990-t - Exempt Organization Business Income Tax Return (and Proxy Tax Under Section 6033(e))" contain the updated filing procedures for the IRS-issued Form 990-T. Download your copy of the instructions by clicking the link below.

IRS Form 990-T is a tax form issued by the United States Internal Revenue Service.

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2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 990-T
Exempt Organization Business Income Tax Return (and Proxy Tax Under Section
6033(e))
Future Developments
Alternative tax for corporate
Section references are to the Internal Revenue
Code unless otherwise noted.
organizations with qualified timber
The IRS has created a page on IRS.gov
gains. The alternative tax for corporations
Contents
Page
for information about Form 990-T and its
with qualified timber gains has been
Purpose of Form . . . . . . . . . . . . . . .
2
instructions, at IRS.gov/Form990T.
extended. Therefore, for tax years
Information about any future
Who Must File . . . . . . . . . . . . . . . .
2
beginning in 2017, if a corporation has
developments affecting Form 990-T (such
Definitions . . . . . . . . . . . . . . . . . . .
2
both a net capital gain and a qualified
as legislation enacted after we release it)
When To File . . . . . . . . . . . . . . . . .
3
timber gain, a maximum 23.8% alternative
will be posted on that page.
Where To File . . . . . . . . . . . . . . . . .
3
tax may apply.
Estimated Tax Payments . . . . . . . . .
3
What's New
Depository Method of Tax
Principal Business Activity Codes. The
Payment . . . . . . . . . . . . . . . . .
4
Tax rates for corporate organizations
Principal Business Activity Codes, located
that are fiscal year filers. P.L. 115-97
Interest and Penalties . . . . . . . . . . . .
4
at the end of these instructions, have been
replaced the graduated corporate tax
Which Parts To Complete . . . . . . . . .
4
updated and revised to reflect updates to
structure with a flat 21% corporate tax rate
the North American Industry Classification
Consolidated Returns
. . . . . . . . . . .
5
and repealed the corporate alternative
System (NAICS).
Other Forms That May Be
minimum tax (AMT), effective for tax years
Required . . . . . . . . . . . . . . . . .
5
Section 179D deductions. The
beginning after December 31, 2017.
Accounting Methods . . . . . . . . . . . .
7
deduction under section 179D for the cost
However, under section 15, corporations
Accounting Period . . . . . . . . . . . . . .
7
of energy efficient commercial building
with fiscal tax years beginning before
Reporting Form 990-T Information
property has been extended through
January 1, 2018, and ending after
on Other Returns
. . . . . . . . . . .
7
December 31, 2017.
December 31, 2017, figure and apportion
Rounding Off to Whole Dollars . . . . . .
7
their tax (including the alternative
Attachments . . . . . . . . . . . . . . . . . .
7
America Samoa economic
minimum tax) by blending the rates in
Public Inspection Requirements of
development credit. The American
effect before January 1, 2018, with the
Section 501(c)(3)
Samoa economic development credit has
rate in effect after December 31, 2017.
Organizations . . . . . . . . . . . . . .
7
been extended through December 31,
See Blended tax rate for fiscal year filers
Period Covered
. . . . . . . . . . . . . . .
9
2017.
and Alternative minimum tax for fiscal year
Name and Address . . . . . . . . . . . .
10
filers in Part III. Tax Computation, later.
Blocks A Through J . . . . . . . . . . . .
10
Disaster relief. Disaster tax relief enacted
Part I. Unrelated Trade or
for those impacted by Hurricane Harvey,
Form 8975. Certain United States
Business Income
. . . . . . . . . .
10
Irma, or Maria includes a provision
persons that are the ultimate parent entity
Part II. Deductions Not Taken
modifying the limit on a corporation's
of a United States multinational enterprise
Elsewhere . . . . . . . . . . . . . . .
14
deduction for charitable contributions
group with annual revenue for the
Part III. Tax Computation
. . . . . . . .
18
made after August 22, 2017 and before
preceding reporting period of $850 million
Part IV. Tax and Payments . . . . . . .
20
January 1, 2018 (after October 7, 2017
or more are required to file Form 8975.
Part V. Statements Regarding
and before January 1, 2019 for relief
Form 8975 and its Schedules A (Form
Certain Activities and Other
efforts in the California wildfire disaster
8975) must be filed with the income tax
Information . . . . . . . . . . . . . .
22
area.) See Temporary suspension of 10%
return of the ultimate parent entity of a
Signature
. . . . . . . . . . . . . . . . . .
22
limitation for certain disaster-related
U.S. multinational enterprise group for the
Schedule A. Cost of Goods Sold . . . .
23
contributions, later. For more information
tax year in or within which the reporting
Schedule C. Rent Income . . . . . . . .
24
on this and other disaster relief provisions,
period covered by Form 8975 ends. The
Schedule E. Unrelated
see Pub. 976.
first required reporting period for an
Debt-Financed Income . . . . . . .
24
ultimate parent entity is the 12-month
Reminder
Schedule F. Interest, Annuities,
reporting period that begins on or after the
Royalties, and Rents From
first day of a tax year of the ultimate parent
Don't include social security numbers
Controlled Organizations
. . . . .
25
entity that begins on or after June 30,
on publicly disclosed forms. Because
Schedule G. Investment Income of
2016. For more information, see Form
the IRS is required to publicly disclose a
a Section 501(c)(7), (9), or
8975, Schedule A (Form 8975), and the
501(c)(3) organization’s Form 990-T
(17) Organization . . . . . . . . . .
26
Instructions for Form 8975 and
returns, social security numbers should
Schedule I. Exploited Exempt
Schedule A (Form 8975).
not be included on this form. Documents
Activity Income, Other Than
subject to disclosure include schedules
Advertising Income . . . . . . . . .
26
Increase in penalty for failure to file.
and attachments filed with the form. See
Schedule J. Advertising Income . . . .
27
For tax years beginning in 2017, the
Public Inspection Requirements of Section
Schedule K. Compensation of
minimum penalty for failure to file a return
501(c)(3) Organizations, later.
Officers, Directors, and
that is over 60 days late has increased to
Trustees . . . . . . . . . . . . . . . .
27
the smaller of the tax due or $210. See
Business Activity Codes . . . . . . . . .
30
Late filing of return, later.
Mar 27, 2018
Cat. No. 11292U
2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 990-T
Exempt Organization Business Income Tax Return (and Proxy Tax Under Section
6033(e))
Future Developments
Alternative tax for corporate
Section references are to the Internal Revenue
Code unless otherwise noted.
organizations with qualified timber
The IRS has created a page on IRS.gov
gains. The alternative tax for corporations
Contents
Page
for information about Form 990-T and its
with qualified timber gains has been
Purpose of Form . . . . . . . . . . . . . . .
2
instructions, at IRS.gov/Form990T.
extended. Therefore, for tax years
Information about any future
Who Must File . . . . . . . . . . . . . . . .
2
beginning in 2017, if a corporation has
developments affecting Form 990-T (such
Definitions . . . . . . . . . . . . . . . . . . .
2
both a net capital gain and a qualified
as legislation enacted after we release it)
When To File . . . . . . . . . . . . . . . . .
3
timber gain, a maximum 23.8% alternative
will be posted on that page.
Where To File . . . . . . . . . . . . . . . . .
3
tax may apply.
Estimated Tax Payments . . . . . . . . .
3
What's New
Depository Method of Tax
Principal Business Activity Codes. The
Payment . . . . . . . . . . . . . . . . .
4
Tax rates for corporate organizations
Principal Business Activity Codes, located
that are fiscal year filers. P.L. 115-97
Interest and Penalties . . . . . . . . . . . .
4
at the end of these instructions, have been
replaced the graduated corporate tax
Which Parts To Complete . . . . . . . . .
4
updated and revised to reflect updates to
structure with a flat 21% corporate tax rate
the North American Industry Classification
Consolidated Returns
. . . . . . . . . . .
5
and repealed the corporate alternative
System (NAICS).
Other Forms That May Be
minimum tax (AMT), effective for tax years
Required . . . . . . . . . . . . . . . . .
5
Section 179D deductions. The
beginning after December 31, 2017.
Accounting Methods . . . . . . . . . . . .
7
deduction under section 179D for the cost
However, under section 15, corporations
Accounting Period . . . . . . . . . . . . . .
7
of energy efficient commercial building
with fiscal tax years beginning before
Reporting Form 990-T Information
property has been extended through
January 1, 2018, and ending after
on Other Returns
. . . . . . . . . . .
7
December 31, 2017.
December 31, 2017, figure and apportion
Rounding Off to Whole Dollars . . . . . .
7
their tax (including the alternative
Attachments . . . . . . . . . . . . . . . . . .
7
America Samoa economic
minimum tax) by blending the rates in
Public Inspection Requirements of
development credit. The American
effect before January 1, 2018, with the
Section 501(c)(3)
Samoa economic development credit has
rate in effect after December 31, 2017.
Organizations . . . . . . . . . . . . . .
7
been extended through December 31,
See Blended tax rate for fiscal year filers
Period Covered
. . . . . . . . . . . . . . .
9
2017.
and Alternative minimum tax for fiscal year
Name and Address . . . . . . . . . . . .
10
filers in Part III. Tax Computation, later.
Blocks A Through J . . . . . . . . . . . .
10
Disaster relief. Disaster tax relief enacted
Part I. Unrelated Trade or
for those impacted by Hurricane Harvey,
Form 8975. Certain United States
Business Income
. . . . . . . . . .
10
Irma, or Maria includes a provision
persons that are the ultimate parent entity
Part II. Deductions Not Taken
modifying the limit on a corporation's
of a United States multinational enterprise
Elsewhere . . . . . . . . . . . . . . .
14
deduction for charitable contributions
group with annual revenue for the
Part III. Tax Computation
. . . . . . . .
18
made after August 22, 2017 and before
preceding reporting period of $850 million
Part IV. Tax and Payments . . . . . . .
20
January 1, 2018 (after October 7, 2017
or more are required to file Form 8975.
Part V. Statements Regarding
and before January 1, 2019 for relief
Form 8975 and its Schedules A (Form
Certain Activities and Other
efforts in the California wildfire disaster
8975) must be filed with the income tax
Information . . . . . . . . . . . . . .
22
area.) See Temporary suspension of 10%
return of the ultimate parent entity of a
Signature
. . . . . . . . . . . . . . . . . .
22
limitation for certain disaster-related
U.S. multinational enterprise group for the
Schedule A. Cost of Goods Sold . . . .
23
contributions, later. For more information
tax year in or within which the reporting
Schedule C. Rent Income . . . . . . . .
24
on this and other disaster relief provisions,
period covered by Form 8975 ends. The
Schedule E. Unrelated
see Pub. 976.
first required reporting period for an
Debt-Financed Income . . . . . . .
24
ultimate parent entity is the 12-month
Reminder
Schedule F. Interest, Annuities,
reporting period that begins on or after the
Royalties, and Rents From
first day of a tax year of the ultimate parent
Don't include social security numbers
Controlled Organizations
. . . . .
25
entity that begins on or after June 30,
on publicly disclosed forms. Because
Schedule G. Investment Income of
2016. For more information, see Form
the IRS is required to publicly disclose a
a Section 501(c)(7), (9), or
8975, Schedule A (Form 8975), and the
501(c)(3) organization’s Form 990-T
(17) Organization . . . . . . . . . .
26
Instructions for Form 8975 and
returns, social security numbers should
Schedule I. Exploited Exempt
Schedule A (Form 8975).
not be included on this form. Documents
Activity Income, Other Than
subject to disclosure include schedules
Advertising Income . . . . . . . . .
26
Increase in penalty for failure to file.
and attachments filed with the form. See
Schedule J. Advertising Income . . . .
27
For tax years beginning in 2017, the
Public Inspection Requirements of Section
Schedule K. Compensation of
minimum penalty for failure to file a return
501(c)(3) Organizations, later.
Officers, Directors, and
that is over 60 days late has increased to
Trustees . . . . . . . . . . . . . . . .
27
the smaller of the tax due or $210. See
Business Activity Codes . . . . . . . . .
30
Late filing of return, later.
Mar 27, 2018
Cat. No. 11292U
Reinsurance Entity” across the top of
including all schedules and attachments. It
General Instructions
Form 990-T.
also includes any amendments to the
Organizations that are liable for other
original return (amended return).
Purpose of Form
taxes (such as the section 1291 tax (Form
By annual return (for purposes of the
990-T, line 35c or 36) or recapture taxes
public inspection rules discussed below),
Use Form 990-T to:
(Form 990-T, line 43)). See a discussion
we mean any annual return (defined
Report unrelated business income;
of these items, later. If your organization is
above) that isn't more than 3 years old
Figure and report unrelated business
only required to file Form 990-T because
from the later of:
income tax liability;
of these taxes, see Other Taxes under
The date the return is required to be
Report proxy tax liability;
Which Parts To Complete, later.
filed (including extensions), or
Claim a refund of income tax paid by a
Qualified tuition programs described
The date that the return is actually filed.
regulated investment company (RIC) or a
under section 529 that have $1,000 or
real estate investment trust (REIT), on
Applicable reinsurance entity. An
more of unrelated trade or business gross
undistributed long-term capital gain;
applicable reinsurance entity is a
income.
Request a credit for certain federal
not-for-profit organization:
Trustees for the following trusts that
excise taxes paid or for small employer
The purpose of which is to help stabilize
have $1,000 or more of unrelated trade or
health insurance premiums paid; and
premiums for coverage in the individual
business gross income:
Report unrelated business income tax
and small group markets in a state during
1. Individual retirement accounts (IRAs),
on reinsurance entities.
the first 3 years of operation of the state's
including traditional IRAs described under
American Health Benefit Exchange for
Who Must File
section 408(a),
such markets within the state when the
2. Simplified employee pension IRAs (SEP
The following entities must file Form
risk of adverse selection related to new
IRAs) described under section 408(k),
990-T.
rating rules and market changes is
3. Savings incentive match plan for
Any domestic or foreign organization
greatest, and
employees of small employers IRAs
exempt under section 501(a) or section
The duties of which are to conduct the
(SIMPLE IRAs) described under section
529(a) if it has gross income of $1,000 or
reinsurance program under ACA section
408(p),
more from a regularly conducted unrelated
1341 by coordinating the funding and
4. Roth IRAs described under section
trade or business (see Regulations
operation of the risk-spreading
408A,
section 1.6012-2(e)). Gross income is
mechanisms designed to implement the
5. Coverdell education savings accounts
gross receipts minus the cost of goods
reinsurance program of the Act.
(ESAs) described under section 530(b),
sold (see Regulations section 1.61-3). For
6. Archer medical savings accounts
Directly connected expenses. To be
a discussion of cost of goods sold see
(Archer MSAs) described under section
deductible in computing unrelated
Schedule A. Cost of Goods Sold, later.
220(d), and
business taxable income, expenses,
The gross receipts from a gaming
7. Health savings accounts (HSAs)
depreciation, and similar items must
business include all amounts
!
described under section 223(d).
qualify as deductions allowed by section
wagered in games, not just the net
162, 167, or other sections, and must be
CAUTION
Each account of a type listed
proceeds after payment of prizes and
directly connected with the conduct of an
above is treated as a separate
other expenses. Cash prizes aren't
TIP
unrelated trade or business activity.
trust for unrelated business
included in cost of goods sold but are
income tax purposes (even if there is a
To be directly connected with the
reported on line 28 as other deductions.
single owner or beneficiary for multiple
conduct of an unrelated trade or business
accounts). A custodian is treated as a
activity, expenses, depreciation, and
A disregarded entity, as described
trustee. See section 408(h). Individual
similar items must bear a proximate and
in Regulations sections
!
retirement annuities, unlike individual
primary relationship to the conduct of the
301.7701-1 through 301.7701-3,
CAUTION
retirement accounts, aren't subject to
activity. For example, where facilities
is treated as a branch or division of its
unrelated business income tax.
and/or personnel are used both to conduct
parent organization for federal tax
exempt activities and to conduct unrelated
purposes. Therefore, financial information
IRAs and other tax-exempt
trade or business activities, expenses and
applicable to a disregarded entity must be
shareholders in a RIC or REIT
similar items attributable to such facilities
reported as the parent organization's
TIP
filing Form 990-T only to obtain a
and/or personnel must be allocated
financial information.
refund of income tax paid on undistributed
between the two uses on a reasonable
Organizations liable for the proxy tax on
long-term capital gains should complete
basis. The portion of any such item
lobbying and political expenditures. See
Form 990-T as explained in IRAs and
allocated to the unrelated trade or
Line 37. Proxy Tax, later, for a discussion
other tax-exempt shareholders in a
business activity must bear a proximate
of the proxy tax. If your organization is only
RIC or REIT, later.
and primary relationship to that business
required to file because of the proxy tax,
activity.
see Proxy Tax Only under Which Parts To
Definitions
Not substantially related to. Not
Complete, later.
Section 501(c)(3) organization.
substantially related to means the activity
Colleges and universities of states and
Section 501(c)(3) describes certain
that produces the income doesn’t
other governmental units, and subsidiary
organizations which are exempt from
contribute importantly to the exempt
corporations wholly owned by such
taxation under section 501(a). A 501(c)(3)
purposes of the organization, other than
colleges and universities. However, a
organization is an organization organized
the need for funds, etc. Whether an
section 501(c)(1) corporation that is an
and operated exclusively for charitable
activity contributes importantly depends in
instrumentality of the United States and
purposes. See Regulations section
each case on the facts involved.
both organized and exempt from tax by an
1.501(c)(3)-1(a).
Act of Congress doesn’t have to file.
For details, see Pub. 598, Tax on
Applicable reinsurance entities under
Unrelated Business Income of Exempt
Annual return. An annual return (for
the Affordable Care Act of 2010 (ACA),
Organizations.
purposes of the public inspection rules
section 1341(c)(1), must write “Applicable
discussed below) is an exact copy of the
Trade or business. A trade or business
Form 990-T that was filed with the IRS,
is any activity conducted for the
Instructions for Form 990-T
-2-
production of income from selling goods or
6. That consists of qualified
or an Archer MSA must file Form 990-T by
performing services. An activity must be
convention or trade show activities
the 15th day of the 4th month after the end
conducted with intent to profit to constitute
regularly conducted by a section 501(c)
of its tax year. All other organizations must
a trade or business. An activity doesn’t
(3), (4), (5), or (6) organization as one of
file Form 990-T by the 15th day of the 5th
lose its identity as a trade or business
its substantial exempt purposes (see
month after the end of their tax years. If
merely because it is conducted within a
section 513(d)(3) for the meaning of
the regular due date falls on a Saturday,
larger group of similar activities that may
qualified convention and trade show
Sunday, or legal holiday, file no later than
or may not be related to the exempt
activities); or
the next business day. If the return is filed
purpose of the organization. If, however,
late, see Interest and Penalties, later.
7. That furnishes one or more
an activity conducted for profit is an
services described in section 501(e)(1)(A)
Extension. Corporations may request an
unrelated trade or business, no part of it
by a hospital to one or more hospitals
automatic extension of time to file Form
can be excluded from this classification
subject to conditions in section 513(e); or
990-T by using Form 8868, Application for
merely because it doesn’t result in profit.
Automatic Extension of Time To File an
8. That consists of qualified pole
Unrelated trade or business income.
Exempt Organization Return.
rentals, as defined in section 501(c)(12)
Unrelated trade or business income is the
(D), by a mutual or cooperative telephone
Amended return. To correct errors or
gross income derived from any trade or
or electric company; or
change a previously filed return, write
business (defined above) regularly carried
9. That includes activities relating to
“Amended Return” at the top of the return.
on and not substantially related to (defined
the distribution of low-cost articles, each
Also, include a statement that indicates
above) the organization's exempt purpose
costing $10.70 or less, by an organization
the line number(s) on the original return
or function (aside from the organization's
described in section 501 and contributions
that was changed and give the reason for
need for income or funds or the use it
to which are deductible under section
each change. Generally, the amended
makes of the profits).
170(c)(2) or (3) if the distribution is
return must be filed within 3 years after the
Generally, for section 501(c)(7), (9), or
incidental to the solicitation of charitable
date the original return was due or 3 years
(17) organizations, unrelated trade or
contributions; or
after the date the organization filed it,
business income is derived from
10. That includes the exchange or
whichever is later.
nonmembers with certain modifications
rental of donor or membership lists
Where To File
(see section 512(a)).
between organizations described in
For a section 511(a)(2)(B) state college
section 501 and contributions to which are
U.S. Mail. Send Form 990-T and all other
or university, or a corporation wholly
deductible under section 170(c)(2) or (3);
required information to:
owned by such a college or university,
or
unrelated trade or business income is
Department of the Treasury
11. That consists of bingo games as
derived from activities not substantially
Internal Revenue Service Center
defined in section 513(f). Generally, a
related to exercising or performing any
Ogden, UT 84201-0027
bingo game isn't included in any unrelated
purpose or function described in section
trade or business if:
501(c)(3).
a. Wagers are placed, winners are
Private Delivery Service. Organizations
An unrelated trade or business doesn’t
determined, and prizes are distributed in
can use certain private delivery services
include a trade or business:
the presence of all persons wagering in
(PDSs) designated by the IRS to meet the
1. In which substantially all the work is
that game, and
"timely mailing as timely filing" rule for tax
performed for the organization without
returns. Go to
IRS.gov/PDS
for the list of
b. The game doesn’t compete with
compensation; or
PDS.
bingo games conducted by for-profit
2. That is conducted by a section
businesses in the same jurisdiction, and
The PDS can tell you how to get written
501(c)(3) or 511(a)(2)(B) organization
proof of the mailing date. For the IRS
c. The game doesn’t violate state or
mainly for the convenience of its
mailing address to use if you're using
local law; or
members, students, patients, officers, or
PDSs, go to
IRS.gov/PDSstreetAddresses
12. That consists of conducting any
employees; or
and select the last Submission Processing
game of chance by a nonprofit
Center address for filing Form 990-T using
3. That sells items of work-related
organization in the state of North Dakota
a PDS.
equipment and clothes, and items
and the conducting of the game doesn’t
normally sold through vending machines,
violate any state or local law; or
Private delivery services can’t
food dispensing facilities or by snack bars,
deliver items to P.O. boxes. You
!
13. That consists of soliciting and
by a local association of employees
must use the U.S. Postal Service
receiving qualified sponsorship payments
described in section 501(c)(4), organized
CAUTION
to mail any item to an IRS P.O. box
that are solicited or received after
before May 27, 1969, if the sales are for
address.
December 31, 1997. Generally, qualified
the convenience of its members at their
sponsorship payment means any payment
usual place of employment; or
Estimated Tax Payments
to a tax-exempt organization by a person
4. That sells merchandise
engaged in a trade or business in which
Generally, an organization filing Form
substantially all of which was received by
there is no arrangement or expectation of
990-T must make installment payments of
the organization as gifts or contributions;
any substantial return benefit by that
estimated tax if its estimated tax (tax
or
person other than the use or
minus allowable credits) is expected to be
5. That consists of qualified public
acknowledgment of that person's name,
$500 or more. Both corporate and trust
entertainment activities regularly
logo, or product lines in connection with
organizations use Form 990-W, Estimated
conducted by a section 501(c)(3), (4), or
the activities of the tax-exempt
Tax on Unrelated Business Taxable
(5) organization as one of its substantial
organization. See section 513(i).
Income for Tax-Exempt Organizations, to
exempt purposes (see section 513(d)(2)
figure their estimated tax liability. Don't
When To File
for the meaning of qualified public
include the proxy tax when computing
entertainment activities); or
your estimated tax liability for 2017.
An employees' trust defined in section
401(a), an IRA (including SEPs and
SIMPLEs), a Roth IRA, a Coverdell ESA,
Instructions for Form 990-T
-3-
To figure estimated tax, trusts and
If you attach Form 2220, check the box
Interest. Interest is charged on taxes not
corporations must take the alternative
on Form 990-T, line 47, and enter the
paid by the original due date for the return
minimum tax (if applicable) into account.
amount of any penalty on this line.
even if the organization uses Form 8868 to
See Form 990-W for more information.
request an automatic extension of time to
Trust fund recovery penalty. This
file. Interest is also charged on penalties
Depository Method of Tax
penalty may apply if certain excise,
imposed for failure to file, negligence,
income, social security, and Medicare
Payment
fraud, substantial valuation
taxes that must be collected or withheld
The organization must pay any tax due in
misstatements, and substantial
aren't paid to the United States Treasury.
full by the due date of the return without
understatements of tax from the due date
These taxes are generally reported on:
extension.
(including extension) to the date of
Form 720, Quarterly Federal Excise
payment. The interest charge is figured at
Tax Return;
the underpayment rate determined under
Electronic Deposit Requirement
Form 941, Employer's Quarterly
section 6621.
Federal Tax Return;
The organization must deposit all
Form 943, Employer's Annual Federal
Late filing of return. An organization
depository taxes (such as employment
Tax Return for Agricultural Employees; or
that fails to file its return when due
tax, excise tax, and corporate income tax)
Form 945, Annual Return of Withheld
(including extension of time for filing) is
electronically. Generally, electronic fund
Federal Income Tax.
subject to a penalty of 5% of the unpaid
transfers are made using the Electronic
tax for each month or part of a month the
The trust fund recovery penalty may be
Federal Tax Payment System (EFTPS).
return is late, up to a maximum of 25% of
imposed on all persons who are
For more information about EFTPS or to
the unpaid tax. The minimum penalty for a
determined by the IRS to have been
enroll in EFTPS, visit the EFTPS website
return that is more than 60 days late is the
responsible for collecting, accounting for,
at IRS.gov/EFTPS, or call 1-800-555-4477
smaller of the tax due or $210. If you
and paying over these taxes, and who
(TTY/TDD 1-800-733-4829). You can also
receive a notice about a penalty after you
acted willfully in not doing so. The penalty
get Pub. 966, Electronic Federal Tax
file this return, reply to the notice with an
is equal to the unpaid trust fund tax. See
Payment System: A Guide to Getting
explanation and we will determine if you
the Instructions for Form 720; Pub. 15
Started.
meet reasonable-cause criteria. Don’t
(Circular E), Employer's Tax Guide; or
Depositing on time. For EFTPS
include an explanation when you file your
Pub. 51 (Circular A), Agricultural
deposits to be made timely, the
return.
Employer's Tax Guide, for details,
organization must submit the deposit by 8
including the definition of responsible
Late payment of tax. The penalty for late
p.m. Eastern time the day before the
persons.
payment of taxes is usually
of 1% of the
deposit is due.
1
2
Other penalties. There are also
unpaid tax for each month or part of a
Same-day wire payment option. If
penalties that can be imposed for
month the tax is unpaid. The penalty can’t
you fail to submit a deposit transaction on
exceed 25% of the unpaid tax. If you
negligence, substantial understatement of
EFTPS by 8 p.m. Eastern time the day
receive a notice about a penalty after you
tax, reportable transaction
before the date a deposit is due, you can
understatements, and fraud. See sections
file this return, reply to the notice with an
still make your deposit on time by using
6662, 6662A, and 6663.
explanation and we will determine if you
the Federal Tax Application (FTA), a
meet reasonable-cause criteria. Don’t
Which Parts To Complete
same-day federal tax payment system that
include an explanation when you file your
works in conjunction with EFTPS. Make
return.
If you are filing Form 990-T only
arrangements with your financial institution
because of the proxy tax, other
Estimated tax penalty. An organization
TIP
ahead of time, noting the institution's
taxes, or only to claim a refund, go
that doesn’t make estimated tax payments
availability, deadlines, and costs, if you
directly to Proxy Tax Only, Other Taxes, or
when due may be subject to an
believe you would ever need the
Claim for Refund, later. If you are filing
underpayment penalty for the period of
same-day wire payment option. To learn
Form 990-T only to claim the credit for
underpayment. Generally, an organization
more, visit
small employer health insurance
is subject to this penalty if its tax liability for
ElectronicFederalTaxPaymentSystem.
premiums, see the instructions for line 45f,
the tax year is $500 or more and it didn’t
later.
Timeliness of deposits. The IRS will
make estimated tax payments of at least
use business days to determine the
the smaller of its tax liability for the tax
timeliness of deposits. Business days are
year or 100% of the prior year's tax. See
Is Gross Income More Than
any day that isn’t a Saturday, Sunday, or
section 6655 for details and exceptions.
$10,000?
legal holiday in the District of Columbia.
Form 2220, Underpayment of
See Pub. 583, Starting a Business and
If the amount in Part I, line 13, column (A),
Estimated Tax by Corporations, is used by
Keeping Records.
is more than $10,000, complete all lines
corporations and trusts filing Form 990-T
and schedules that apply.
to see if the organization owes a penalty
If the organization owes tax when
and its amount. Generally, the
it files Form 990-T, don't include
!
organization isn't required to file this form
Is Gross Income $10,000 or Less?
the payment with the tax return.
CAUTION
because the IRS can figure the amount of
Instead, use EFTPS.
If Part I, line 13, column (A) is $10,000 or
any penalty and notify the organization.
less, complete the following.
However, even if the organization doesn’t
Interest and Penalties
The heading (above Part I);
owe the penalty, you must complete and
Your organization may be subject to
Part I, lines 1–13, column (A);
attach Form 2220 if either of the following
Part I, line 13, for columns (B) and (C);
interest and penalty charges if it files a late
applies.
Part II, lines 29–34;
return or fails to pay tax when due.
The annualized income or adjusted
Parts III–V; and
Generally, the organization isn't required
seasonal installment method is used.
Signature area.
to include interest and penalty charges on
The organization is a “large
Form 990-T because the IRS can figure
organization” computing its first required
the amount and bill the organization for it.
Filers with $10,000 or less on line 13,
installment based on the prior year's tax.
column (A) don't have to complete
Instructions for Form 990-T
-4-
Schedules A through K (however, refer to
section 852(b) instead of filing a separate
ship passenger tax, and certain other
applicable schedules when completing
Form 990-T for each IRA. See Notice
excise taxes.
column (A) and in determining the
90-18, 1990-1 C.B. 327, for information on
See Trust fund recovery penalty,
deductible expenses to include on line 13
who can file a composite return. Complete
earlier.
!
of column (B)).
steps above under Claim For Refund and
follow the additional requirements in the
CAUTION
notice.
Form 926. File Form 926, Return by a
Proxy Tax Only
U.S. Transferor of Property to a Foreign
Backup withholding. If your only
Organizations that are required to file
Corporation, if the organization is required
reason for filing Form 990-T is to claim a
Form 990-T only because they are liable
to report certain transfers to foreign
refund of backup withholding, complete
for the proxy tax on lobbying and political
corporations under section 6038B.
steps above under Claim for Refund and
expenditures must complete the following.
Form 940. File Form 940, Employer's
attach a copy of the Form 1099 showing
The heading (above Part I) except
Annual Federal Unemployment (FUTA)
the withholding.
items E, H, and I;
Tax Return, if the organization is liable for
Lines 37 and 40;
Consolidated Returns
FUTA tax.
Part IV;
The consolidated return provisions of
Signature area; and
Form 941 and Form 943. File Form 941,
section 1501 don't apply to exempt
Attach a statement showing the proxy
Employer's QUARTERLY Federal Tax
organizations, except for organizations
tax computation.
Return, or Form 943, Employer's Annual
having title holding companies. If a title
Federal Tax Return for Agricultural
holding corporation described in section
Other Taxes
Employees, to report income tax withheld,
501(c)(2) pays any amount of its net
and employer and employee social
Organizations that are required to file
income for a tax year to an organization
security and Medicare taxes. Also, see
Form 990-T only because they are liable
exempt from tax under section 501(a) (or
Trust fund recovery penalty, earlier.
for recapture taxes, the section 1291 tax,
would, except that the expenses of
the tax on a hospital organization’s
collecting its income exceeded that
Form 945. File Form 945, Annual Return
non-compliant facility income, or other
income), and the corporation and
of Withheld Federal Income Tax, to report
items listed in the instructions for line 43
organization file a consolidated return as
income tax withheld from nonpayroll
must complete the following.
described below, then treat the title
distributions or payments, including
The heading above Part I except items
holding corporation as being organized
pensions, annuities, IRAs, gambling
E, H, and I;
and operated for the same purposes as
winnings, and backup withholding.
The appropriate lines of Parts III and IV;
the other exempt organization (in addition
Form 1098. File Form 1098, Mortgage
Signature area; and
to the purposes described in section
Interest Statement, to report the receipt
Attach all appropriate forms and/or
501(c)(2)).
from any individual of $600 or more of
schedules showing the computation of the
mortgage interest (including points) in the
Two organizations exempt from tax
applicable tax or taxes.
course of the organization's trade or
under section 501(a), one a title holding
business and reimbursements of overpaid
company and the other earning income
Claim for Refund
interest.
from the first, will be includible
corporations for purposes of section
If your only reason for filing a Form 990-T
Forms 1099-A, B, DIV, INT, LTC, MISC,
1504(a). If the organizations meet the
is to claim a refund, complete the
OID, R, S, and SA. Organizations
definition of an affiliated group and the
following:
engaged in an unrelated trade or business
other relevant provisions of Chapter 6 of
The heading above
may be required to:
the IRC, then these organizations may file
Part I except items E, H, and I;
File an information return on Forms
a consolidated return. The parent
Enter -0- on line 13, column (A), line 34,
1099-A, B, DIV, INT, LTC, MISC, OID, R,
organization must attach Form 851,
and line 44;
S, and SA;
Affiliations Schedule, to the consolidated
Enter the credit or payment on the
Report acquisitions or abandonments
return. For the first year a consolidated
appropriate line (45a–45g);
of secured property through foreclosure;
return is filed, the title holding company
Lines 46, 49, and 50; and
Report proceeds from broker and barter
must attach Form 1122, Authorization and
Signature area.
exchange transactions;
Consent of Subsidiary Corporation To Be
Report certain dividends and
For claims described below, follow the
Included in a Consolidated Income Tax
distributions;
Return. See Regulations section
additional instructions for that claim.
Report interest income;
1.1502-100.
Report certain payments made on a per
IRAs and other tax-exempt
Other Forms That May Be
diem basis under a long-term care
shareholders in a RIC or REIT. If you
insurance contract, and certain
are an IRA or other tax-exempt
Required
accelerated death benefits;
shareholder that is invested in a RIC or a
Report miscellaneous income (such as
Forms W-2 and W-3. File Form W-2,
REIT and file Form 990-T only to obtain a
payments to providers of health and
Wage and Tax Statement, and Form W-3,
refund of income tax paid on undistributed
medical services, miscellaneous income
Transmittal of Wage and Tax Statements,
long-term capital gains, follow steps above
payments, and nonemployee
to report wages, tips, other compensation,
under Claim for Refund; write “Claim for
compensation);
withheld income taxes, and withheld
Refund Shown on Form 2439” at the top of
Report original issue discount;
social security/Medicare taxes for
Form 990-T; and attach Copy B of Form
Report distributions from retirement or
employees.
2439, Notice to Shareholder of
profit-sharing plans, IRAs, SEPs,
Undistributed Long-Term Capital Gains.
Form 720. File Form 720, Quarterly
SIMPLEs, insurance contracts;
Federal Excise Tax Return, to report
Composite Form 990-T. If you are a
Report proceeds from real estate
environmental excise taxes,
trustee of more than one IRA invested in a
transactions; and
communications and air transportation
RIC, you may be able to file a composite
taxes, fuel taxes, manufacturer's taxes,
Form 990-T to claim a refund of tax under
Instructions for Form 990-T
-5-

Download Instructions for IRS Form 990-t - Exempt Organization Business Income Tax Return (And Proxy Tax Under Section 6033(E)) 2017

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